BNP Paribas Research discusses its new targets on EUR/USD and USD/JPY.

"We expect USD strength to ultimately prove short-lived. Indeed, we believe a multi-year bearish trend in the USD is under way, with portfolio flows turning increasingly negative for the currency. Yields turning positive in Europe and Japan could spur repatriation by local investors; we note they have accumulated significant US fixed income exposure since 2014," BNPP notes. 

"With evidence of these repatriation flows appearing, we revise our USD forecasts lower and now project EURUSD to rise to 1.14 by end-2023 and USDJPY to decline to 121," BNPP adds.